SEBI has granted an exemption to an acquirer from making an open
offer under the SEBI Takeover Regulations in the case involving Gujarat
Organics Limited (the company). In that case, the promoter Mr. Ashwin S. Dani,
owns 71.15% shares in the company, and proposes to transfer it by way of a gift
to a private trust HD Trust, of which he is one of the trustees. The
beneficiaries of the trust are his family members. The acquirer, HD Trust, does
not hold any shares in the company, while Mr. Dani has been shown as a promoter
for more than 3 years. SEBI granted the exemption for the transfer because this
was an inter se reorganization of holdings that does not alter the
control of the company in any way. Moreover, it was a gift and merely a private
family arrangement to facilitate succession planning.
This is understandable because there
is no change of effective control of the company, and an exemption order was
sought from SEBI only because the transaction may not have satisfied the
technical requirements for an automatic exemption.
Source :
indiacorplaw.blogspot.in
Posted under Miscellaneous May 9,2013
